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Author Topic: 2001 Taxes
Goodyear_26
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Getting ready to do my 2001 taxes.

Want to write off my TWA stock.

I know there is a $3000 cap per year.

Question....what date should one use for the "end of the line"? April 10, December 2, or some other date.

Appreciate any help here.

Thanks


Posts: 103 | From: Tampa, FL, USA  |  IP: Logged
pomonastudent
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quote:
Originally posted by Goodyear_26:
Getting ready to do my 2001 taxes.

Want to write off my TWA stock.

I know there is a $3000 cap per year.

Question....what date should one use for the "end of the line"? April 10, December 2, or some other date.

Appreciate any help here.

Thanks


I had the same question...however, according to my broker, my TWA shares were converted into some kind of options/warrants, and therefore not liquidated. Thus, I can't take the loss, and ended up selling the whole lot for $1 in '02, so I can claim the loss against taxes next year. Oh well, had some losses already, so not a big deal.


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robw
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this may a bit of a cop out, but i gave in and started using turbotax on the web (you log in and pay instead of buying or downloading software) it was really great, got my refund in 7 days, and helped me figure out my tax loss and it keeps track of the carryover. I had no tax gains last year lol but i think you can take 3K in losses in excess of gains. Anyway it got so complicated it really helps to use a program and a lot faster than the books I used to buy (and no i do not own inutuit stock but do have friends that work there)

Rob


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f8bandit
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TurboTax works great but pilots cannot do the electronic filing b/c of the override on the expense money on the 2106. From what I have learned, we are not able to take the loss on the stock unless we actually sell our shares, b/c the shares are still trading at some very LOW price.
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mioguido
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Goodyear,
i think the end of the line was when you sold your TWA shares??? that is what i'm doing. you should save your buy and sell statements for tax purposes.

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Goodyear_26
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Thanks for the responses.

Nobody mentioned the "end date" which is what I was looking for.

But some stated the stock could be traded even at this late date, even if for pennies.

If the IRS has to check every stock loss, especially for this past year, and there has to be hundreds, they have a big job on their hands.

I'm probably wrong, but I'm going to treat this as a 2001 loss. I've got $13000 in this deal.

Rob W...agree that Turbo Tax is a good vehicle and I'm using it. The difference between you and me ( or is it I) is that unfortunately I qualify for the free version!

Frank


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pomonastudent
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Guess what I was trying to say is that the end date is when you actually "sell", not any of the dates in 2001...if my information was correct, you actually need to sell...even after January 2001 and April 2001, my TWA shares were converted to warrants that still traded on OTC. I just sold last month for $1, can take the capital loss on my 2002 taxes...until then, no dice.
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robw
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I actually did sell all of my shares in 2001....sob...it hurt, but I figured I had to sell to get the deduction for 2001.
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DC9
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TWA stock is still trading.Last price was .007 cents a share.To take a loss in 2001 you would have had to sell your shares and use the date of the sale.The symbol for TWA stock is TWAIQ.
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757orBust
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It's a common misconception that you actually have to sell the stock to generate a taxable event (gain or loss). Actually you can have a ceremonial bonfire and still get get the loss (if you can prove that you owned it).

Straight from the horse's mouth...


Worthless Securities

Stocks that become worthless during the tax year are treated as though they were sold on the last day of the tax year.

(pg 36, IRS Pub 550 - Investment Income & Expenses)


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DC9
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Not to belabor the point but I've been told by CPA's if you can sell the shares for any price they are technically not worthless.
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donuway
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quote:
Originally posted by DC9:
Not to belabor the point but I've been told by CPA's if you can sell the shares for any price they are technically not worthless.

But if they are worth .007 cents a share, unless you had like a bazillion shares, when you take off the brokers fee, that's pretty worthless. If I'm right, that's 7 bucks for every 10,000 shares?

Don


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Goodyear_26
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Don

That's the way I'd argue it. After going to the cleaners once, why would I want to take clean clothes back again?...and pay for the priviledge!


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pomonastudent
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quote:
Originally posted by Goodyear_26:
Don

That's the way I'd argue it. After going to the cleaners once, why would I want to take clean clothes back again?...and pay for the priviledge!


For once, I didn't get charged a transaction fee by my broker; they did it as a "courtesy" trade.


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mioguido
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quote:
Originally posted by pomonastudent:

For once, I didn't get charged a transaction fee by my broker; they did it as a "courtesy" trade.


....i was expecting a sympathy card and a "told you so" from my broker.


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Kenneth
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I had the same courtesy more-or-less from American Express when I sold shares in another company (the only computer company I ever held and the only tip I'll ever take out of a Business Week article) ... I had a total take of $1.20 and they just took that and called it even.

Granted, my brokerage account is my 'play money' to keep me (intentionally) from paying any attention to my retirement funds. I just let those sit and accumulate (not that they've done much of that in the past year though).

I seriously thought about trying to have some TWA shares converted to paper to keep as a memento, though it would have been a pain; figure I'll pick one up somewhere later.

Ken


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Joe
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Enter a worthless stock (TWA)as you would enter a sale, but with a sales price of zero. Enter the cost, date acquired, and 12/31/01 for the sold date. A worthless stock is is assumed to be disposed of on the last day of the year.

You should claim worthless stock only in the year it becomes worthless. This happens when a corpation files for bankruptcy, stops doing business, and has no assets. The loss is treated as nonbusiness bad debt,

REF: Turbo Tax Deluxe "Losses"


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sagen
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Hey ken I have quite a few of the actual paper certificates if you want them for memento purposes! Sitting right there with my DD214 only 1 gets me a check every month and 1 reminds me of how many times I have gotten to start at the bottom again
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